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Juniper Networks, Inc. JNPR is set to release its fourth-quarter 2024 results on Feb. 4, after the closing bell. The leading provider of networking solutions and communication devices is expected to report top-line growth year over year, driven by solid demand in multiple verticals.

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Juniper’s focus on expanding its secure, efficient and user-friendly network management solution suite will likely strengthen its prospects in the AI-driven networking market. Healthy demand for data center solutions, hardware maintenance and professional services is another tailwind.

Factors at Play

During the fourth quarter, Juniper launched the world’s first 800Gbps Ethernet services over 800ZR coherent transceivers in collaboration with the Finnish telecom provider Elisa Oyj. At the heart of the deployment was Juniper’s state-of-the-art Converged Optical Routing Architecture solution. By integrating Internet Protocol over Dense Wavelength Division Multiplexing technology, the solution facilitates seamless upgrades to higher bandwidths, accommodating increasing data traffic without major infrastructure overhauls. This integration eliminates the need for multiple network elements, reduces complexity and energy consumption in network architecture, simplifies operations and maximizes routing platform capacity. This development is likely to have supported the top line in the to-be-reported quarter.

In the fourth quarter, Juniper formed a partnership with the Norwegian Broadcasting Corporation (“NRK”), a state-owned radio and television broadcasting company, to support the latter’s network modernization initiatives. Its cutting-edge multiprotocol label switching-based wide-area network features cloud-optimized hardware capable of massive bandwidth and multi-service scaling, paired with advanced automation software. This combination allows for real-time traffic engineering and provides predictive, data-driven insights into network health, enhancing the reliability and quality of user experiences across NRK’s media channels, including live and on-demand services.

Juniper’s comprehensive AI native networking portfolio is increasingly being used by organizations. JATCO Ltd., one of the major players in the automotive transmission industry, has deployed Juniper’s AP43 and AP63 Access Points to upgrade its WiFi network, leveraging the power of Juniper purpose-built AIOps (Artificial Intelligence for IT Operations). Nippon Gases, one of the major industrial gas companies in Europe, has opted to deploy Juniper’s cutting-edge AI-powered wired and wireless LAN solutions to ensure seamless connectivity across sites, streamline network operations and propel digital innovation. Integration of such advanced capabilities will ensure industry-leading efficiency and resilience across Nippon Gases’ vast operations, including several offices, specialty labs, manufacturing plants, trucks, pipelines and ships.

Moreover, the deployment of Juniper’s sophisticated AI engine, Mist AI, has enabled the South Korea-based lighting technology firm Seoul Semiconductor to streamline its wireless operations and gain valuable insights into user experiences through service level monitoring. These initiatives are expected to have a positive impact on Juniper’s upcoming results.

Overall Expectations

The Zacks Consensus Estimate for Cloud vertical revenues is pegged at $367.08 million, implying an improvement from $317.3 million in the year-ago quarter. For the Service Provider segment, the Zacks Consensus Estimate stands at $412.34 million, suggesting an improvement from $400.2 million year over year. The consensus mark for Enterprise business revenues is pegged at $616.1 million, implying a year-over-year reduction from $647.3 million.

For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.41 billion, indicating an improvement from the year-ago quarter’s reported figure of $1.36 billion. The consensus estimate for adjusted earnings per share is pegged at 58 cents, indicating a decrease from 61 cents reported in the prior-year quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Juniper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 58 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Juniper Networks, Inc. Price and EPS Surprise

Juniper Networks, Inc. price-eps-surprise | Juniper Networks, Inc. Quote

Zacks Rank: Juniper currently has a Zacks Rank #3.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

The Earnings ESP for Sony Group Corporation SONY is +2.91% and carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb. 13. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Zillow Group, Inc. ZG is +10.44% and carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb. 11.

InterDigital, Inc. IDCC is set to release quarterly numbers on Feb. 20. It has an Earnings ESP of +3.21% and sports a Zacks Rank #1.

Zacks Investment Research

Viavi Solutions Inc. VIAV reported strong second-quarter fiscal 2025 results, with both adjusted earnings and revenues surpassing the respective Zacks Consensus Estimate.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company reported revenue growth backed by healthy growth in the Network Enablement (NE) segment. Management’s strong emphasis on various markets such as wireless & fiber, optical transport, Ethernet, broadband access, video test and storage network testing are key growth drivers. However, a constrained spending environment owing to macroeconomic challenges is worrisome.

Net Income

On a GAAP basis, net income in the quarter was $9.1 million or 4 cents per share compared with $10.7 million or 5 cents per share in the year-ago quarter. Despite top-line growth, the decline in GAAP earnings was primarily due to high operating expenses and income tax provisions during the reported quarter.

Non-GAAP net income was $29.4 million or 13 cents per share compared with $23.7 million or 11 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 3 cents.

Viavi Solutions Inc. Price, Consensus and EPS Surprise

Viavi Solutions Inc. price-consensus-eps-surprise-chart | Viavi Solutions Inc. Quote

Revenues

Quarterly revenues were $270.8 million, up 6.4% from $254.5 million in the year-ago quarter. The healthy demand in the NE segment cushioned the top line. Revenues beat the Zacks Consensus Estimate of $260 million.

Net sales in the NE segment were $179 million, up from $155.5 million in the year-ago quarter. The 15.1% growth was primarily driven by the strong demand from service providers and network equipment manufacturers for both lab and field instruments.

Revenues from the Service Enablement (SE) segment were $20.9 million, down 13.3% year over year, owing to the conservative spending behavior of enterprise customers.

Optical Security and Performance Products (OSP) revenues declined to $70.9 million from the year-earlier quarter’s tally of $74.9 million, primarily due to weaker demand for 3D sensing products.

Net sales from America contributed $116.1 million to revenues, up from $103.1 million reported in the year-ago quarter. Revenues from Asia-Pacific were $93.6 million, up 17.7% from the year-earlier quarter’s tally of $79.5 million. Revenues from EMEA decreased to $61.1 million from $71.9 million reported in the prior-year quarter.

Other Details

In the second quarter of fiscal 2025, the non-GAAP gross margin was 61.1%, up 110 basis points (bps) from the prior-year quarter. GAAP gross margin in the NE segment was 64.5%, up 200 bps year over year, as a result of higher volume and product mix. SE segment’s gross margin decreased to 67.5% from 68.9% in the prior-year quarter. OSP segment’s gross margin decreased to 50.6% from 52.1% in the year-ago quarter. The year-over-year decline was primarily driven by lower volume and product mix.

Non-GAAP operating margin increased 170 bps year over year to 14.9%. Operating margin in the Network and Service Enablement (NSE) business increased 510 bps year over year to 8.7%, driven by higher gross margin fall through. OSP segment’s operating margin decreased to 32.4% from 36.4% in the prior-year quarter.

Cash Flow & Liquidity

During the December quarter, Viavi generated $44.7 million of cash from operating activities, a significant increase from $20.4 million in the year-ago period. As of Dec. 28, 2024, the company had $488 million in cash and cash equivalents and $639.3 million of long-term debt.

Outlook

For the third quarter of fiscal 2025, management expects revenues in the range of $276-$288 million. Non-GAAP operating margin is expected to be in the range of 13%-15%, with non-GAAP earnings per share between 10 and 13 cents.

For the NSE business, revenues are projected to be between $202 and $212 million, with a non-GAAP operating margin of 6-8%. Revenues for the OSP segment are anticipated to be in the band of $74-$76 million, with a non-GAAP operating margin of 32-34%.

VIAV’s Zacks Rank

Viavi currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Pinterest, Inc. PINS is scheduled to release fourth-quarter 2024 earnings on Feb. 6. The Zacks Consensus Estimate for earnings is pegged at 63 cents per share, indicating growth of 18.9% from the year-ago figure.

Zillow Group, Inc. ZG is scheduled to release fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, indicating growth of 50% from the year-ago figure.

Light and Wonder LNW is scheduled to release fourth-quarter earnings on Feb. 25. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, indicating growth of 47.95% from the year-ago figure.

Zacks Investment Research

Zillow Group has an average rating of overweight and mean price target of $82.62, according to analysts polled by FactSet.